NewsThe EIA ReportPrevious2.9 Million BarrelsForecast1.3 Million BarrelsAnalysisCrude traded above $108 per barrel today due to speculations on demand that may wane in the two biggest energy consumers, US and China, while traders await supply data today.
Crude today hovers around $108 per barrel recording its highest around $108.56 and lowest around $107.70, while it currently is trading around $108.52 per barrel.
The American Petroleum Institute yesterday showed a drop in inventories by 2.8 MB, lower than forecasts of highs of 1.3 MB and thus implying stronger demand.
Investors anxiously await the EIA report today, where inventories are expected to gain 568 thousand barrels.
Crude yesterday traded around $108 per barrel recording its highest around $108.57 and lowest around $107.47 per barrel, closing around $107.84 per barrel. Futures yesterday rose following China’s interest rate hike to curb inflation, alongside the rise in inventories expected today.
Moreover, China yesterday decided to hike up interest rates by 25 points in order to curb inflation in the world’s largest economy; the US followed as policy makers eye inflation looking for signs of rising commodity costs, which could impede consumer prices and negatively impact them in the long-run.
Meanwhile, political turmoil in the MidEast persists as Gaddafi loyalists push back rebels from central oil port Brega as opposition plans on exporting crude for the first time since February 15.
As for NYMEX as of 04:51 EST; motor gasoline fell $0.19 recording $319.530 per gallon; heating is trading around $319.600 per gallon inclining $0.35; whereas natural gasoline shed $0.21 to record $4.222. In London, Brent futures dropped $0.25 to record $122.530.